[Federal Register Volume 76, Number 174 (Thursday, September 8, 2011)]
[Proposed Rules]
[Pages 55619-55621]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-22899]


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POSTAL REGULATORY COMMISSION

39 CFR Part 3055

[Docket No. RM2011-14; Order No. 837]


Performance Measurement for Special Postal Services

AGENCY: Postal Regulatory Commission.

ACTION: Proposed rulemaking.

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SUMMARY: The Commission is proposing rules addressing reporting 
requirements for the measurement of the level of service the Postal 
Service provides in connection with Stamp Fulfillment Services, through 
which it fills stamp and product orders received via mail, telephone, 
facsimile, or Internet at a dedicated fulfillment center. The proposed 
rules are intended to be consistent with recent Postal Service 
representations about proposed service standards, measurement methods, 
and reporting requirements. This document informs the public of the 
proposed rule and invites public comment.

DATES: Comments are due: September 28, 2011; reply comments are due: 
October 11, 2011.

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ADDRESSES: Submit comments electronically by accessing the ``Filing 
Online'' link in the banner at the top of the Commission's Web site at 
http://www.prc.gov/prc-pages/filing-online/login.aspx. Commenters who 
cannot submit their views electronically should contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section for advice on 
alternatives to electronic filing.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820 (for information related to the proposed rule) or 
[email protected] (for electronic filing assistance).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Introduction
II. Procedural History
III. Background of Postal Service Proposals
IV. Service Performance Measurement Reporting
V. Designation of Public Representative
VI. Solicitation of Comments
VII. Ordering Paragraphs

I. Introduction

    This rulemaking is part of the series of rulemakings initiated by 
the Postal Regulatory Commission (Commission) to fulfill its 
responsibilities under the Postal Accountability and Enhancement Act 
(PAEA), Public Law 109-435, 120 Stat. 3198 (2006). The proposed rules 
described herein would establish reporting requirements for the 
measurements of level of service afforded by the Postal Service in 
connection with Stamp Fulfillment Services (SFS). The reporting of 
level of service is required by 39 U.S.C. 3652(a)(2)(B)(i) as part of 
the Postal Service's annual report to the Commission and supporting 
documentation. This is a necessary part of the Commission's 
implementation of a modern system of rate regulation for market 
dominant products that ensures service is not impaired as a result of 
the greater flexibility provided to the Postal Service under the PAEA 
in light of the price cap requirements. See 39 U.S.C. 3622 and 3651.

II. Procedural History

    SFS provides the fulfillment of stamp and product orders received 
by mail, phone, fax, or Internet at the Postal Service's SFS center in 
Kansas City, Missouri. Orders can include stamps, stamped cards, 
envelopes, stationery, and other philatelic items. A fee is charged for 
order processing and handling.
    On July 13, 2010, the Commission added SFS to the market dominant 
product list pursuant to a Postal Service request.\1\ On June 16, 2011, 
the Commission granted a Postal Service request for a temporary waiver 
from reporting service performance for SFS until the filing date for 
the 2011 Annual Compliance Report. The Commission further asked the 
Postal Service to either file a request for a semi-permanent exception 
from reporting or begin the consultation process for establishing 
service standards (and measurement systems) prior to August 1, 2011.\2\
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    \1\ Docket No. MC2009-19, Order No. 487, Order Accepting Product 
Descriptions and Approving Addition of Stamp Fulfillment Services to 
the Mail Classification Schedule Product Lists, July 13, 2010.
    \2\ Docket Nos. RM2011-1, RM2011-4 and RM2011-7, Order No. 745, 
Order Concerning Temporary Waivers and Semi-Permanent Exceptions 
from Periodic Reporting of Service Performance Measurement, June 16, 
2011.
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    By letter dated July 29, 2011, the Postal Service informed the 
Commission of its intent to institute an internal measurement system 
for SFS and asked for Commission comment.\3\ The Postal Service 
proposed service standards, measurement methodologies, and reporting 
requirements. The Postal Service indicated that it will formalize its 
proposed service standards through a Federal Register notice.
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    \3\ Letter dated July 29, 2011 from Kevin A. Calamoneri, 
Managing Counsel, Corporate & Postal Business Law, United States 
Postal Service to Shoshana M. Grove, Secretary, Postal Regulatory 
Commission.
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    On August 25, 2011, the Commission responded to the Postal Service 
request for comment.\4\ The Commission concurred with the measurement 
approach that the Postal Service proposed and indicated that the 
Commission would initiate a rulemaking to make the Commission's 
reporting rules consistent with the Postal Service's reporting 
proposals.
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    \4\ Letter dated August 25, 2011 from Shoshana M. Grove, 
Secretary, Postal Regulatory Commission to Kevin A. Calamoneri, 
Managing Counsel, Corporate & Postal Business Law, United States 
Postal Service.
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III. Background of Postal Service Proposals

A. Proposed Measurement System

    The Postal Service proposes to measure the time from SFS order 
entry to the time a SFS order is placed on a mail truck manifest for 
entry into the mailstream. The transit time once an order is entered 
into the mailstream to delivery is not included as part of the SFS 
measurement.
    A measurement starts when an order is entered into the National 
Customer Management System (NCMS). NCMS manages SFS inventory, general 
ledger, order history, and customer accounts.
    A measurement ends when the order is logically closed out in the 
Automated Fulfillment Equipment System (AFES).\5\ The AFES system 
interacts with NCMS and is utilized to fulfill orders.
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    \5\ A logical slosure is an indication that an order has been 
fulfilled, packaged, laveled, and placed on a manifest for pickup by 
a Postal Service truck before entering the mailstream.
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B. Proposed Service Standards

    The Postal Service's proposed service standards vary depending upon 
how a customer's order was received.\6\ The Postal Service proposes the 
following three service standards.
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    \6\ The Postal Service's proposed service standards are not the 
subject of this rulemaking and can best be addressed by interested 
persons through a response to the Postal Service's upcoming Federal 
Register notice on this subject matter.
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     Internet Orders: Non-Philatelic/Non-Custom Less than or 
equal to 2 business days.
     Business Level Orders: Less than or equal to 5 business 
days.
     Philatelic/Custom and all Other Order Sources: Less than 
or equal to 10 business days.

C. Proposed Service Goals

    For each of the three proposed service standards, the Postal 
Service proposes a service goal or target of achieving each service 
standard at least 90 percent of the time.

D. Service Performance Measurement Reporting

    The Postal Service proposes to report the percentage of time that 
SFS meets or exceeds the applicable proposed service standard. The 
Postal Service also proposes to report service variances. Service 
variances will report the total percentage of orders fulfilled within 
the applicable service standard, plus the percentage that are fulfilled 
1, 2, or 3 days late. Reporting is to be disaggregated by how a 
customer's order was received. Percentage on time and service variance 
reporting are to be provided to the Commission both on a quarterly and 
on an annual basis.

IV. Service Performance Measurement Reporting Rules

    The Commission proposes to modify section 3055.65 to include a 
special reporting requirement for SFS. Section 3055.65 specifies the 
requirements for the periodic reporting (quarterly) of service 
performance achievements for special services, which includes SFS.\7\
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    \7\ Note that section 3055.31(e) currently requires quarterly 
data to be aggregated to an annual level and reported to the 
Commission.
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    The special reporting requirement specifies that the Postal Service 
will report: (1) SFS on-time service performance (as a percentage 
rounded to one decimal place); and (2) SFS service

[[Page 55621]]

variance (as a percentage rounded to one decimal place) for orders 
fulfilled within +1 day, +2 days, and +3 days of their applicable 
service standard.
    Both items shall be disaggregated by customer order entry method. 
The Postal Service currently proposes three customer order entry 
methods: (1) Internet Orders: Non-Philatelic/Non-Custom; (2) Business 
Level Orders; and (3) Philatelic/Custom and all Other Order Sources. By 
generically referring to the three proposed methods as ``customer order 
entry method,'' the Postal Service is provided flexibility to propose 
other methods to the Commission for future implementation without 
requiring a rule change.

V. Designation of Public Representative

    Pursuant to 39 U.S.C. 505, James F. Callow is designated as the 
Public Representatives in this proceeding to represent the interests of 
the general public.

VI. Solicitation of Comments

    Interested persons are invited to comment on the rules proposed in 
this rulemaking. Comments are due no later than 20 days after 
publication of this order in the Federal Register. Reply comments are 
due no later than 30 days after publication of this order in the 
Federal Register.

VII. Ordering Paragraphs

    It is ordered:
    1. The Commission proposes to amend its rules of practice and 
procedure by modifying the periodic reporting of service performance 
achievements for special services found in 39 CFR 3055.65.
    2. Docket No. RM2011-14 is established to consider the above 
changes to the Commission's rules of practice and procedure.
    3. Interested persons may file initial comments no later than 20 
days after publication of this order in the Federal Register.
    4. Interested persons may file reply comments no later than 30 days 
after publication of this order in the Federal Register.
    5. Pursuant to 39 U.S.C. 505, James F. Callow is designated as the 
Public Representative in this proceeding to represent the interests of 
the general public.
    6. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Shoshana M. Grove,
Secretary.

List of Subjects in 39 CFR Part 3055

    Administrative practice and procedure; Postal Service; Reporting 
and recordkeeping requirements.

    For the reasons discussed in the preamble, the Postal Regulatory 
Commission proposes to amend chapter III of title 39 of the Code of 
Federal Regulations as follows:

PART 3055--[Amended]

    1. The authority citation for part 3055 continues to read as 
follows:

    Authority: 39 U.S.C. 503, 3622(a), 3652(d) and (e), 3657(c).

    2. In Sec.  3055.65, add paragraph (d) to read as follows:


Sec.  3055.65  Special Services.

* * * * *
    (d) Additional reporting for Stamp Fulfillment Service. For Stamp 
Fulfillment Service, report:
    (1) The on-time service performance (as a percentage rounded to one 
decimal place), disaggregated by customer order entry method; and
    (2) The service variance (as a percentage rounded to one decimal 
place) for orders fulfilled within +1 day, +2 days, and +3 days of 
their applicable service standard, disaggregated by customer order 
entry method.

[FR Doc. 2011-22899 Filed 9-7-11; 8:45 am]
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